Partcicpation Failures and Penalties

A Participation failure occurs if a Centrelink customer fails without reasonable excuse to undertake something Centrelink requires. This could mean contacting Centrelink, attending an interview with a Job Network provider or following an ‘Activity Agreement’ related to seeking work or improving job prospects.

Participation failures can lead to suspension of payments. Repeated or serious failures can lead to payments being stopped for 8 weeks. Financial case management may be available during this period to ensure the family remains housed and fed. 

A penalty of 26 weeks can be applied if a customer reduces their employment prospects by moving to a new area. There may be exceptions to this if the move is for family or health reasons.

A suspension or penalty does not impact on a partner’s payments, or on Family Tax Benefit.

Participation suspensions or penalties can be appealed.

For more information see the Welfare Rights Network fact sheet ‘Participation failures and penalties’.